"China slowdown is a historic opportunity for India as Chinese production becomes less profitable, India could become profitable but not guaranteed. India is a net importer, so China slowdown is an opportunity to relaunch growth in India," Subramanian said.

The Chief Economic Adviser said investment from companies like Foxconn of Taiwan and Xiaomi of China suggest that companies based in China might now view India as a hedge against the slowdown.

On the recent repercussions which rose due to depreciation in their currency Renminbi (RMB), Subramanian said since India is not part of the Chinese value chain, the slowdown in China has left India relatively unscathed.

Talking about RMB, he said India has an unambiguous interest in supporting it becoming the part of SDR (Special Drawing Rights) basket.

He said China should be allowed to get the geo-political benefits arising out of its currency becoming more international because the concrete economic manifestation is that it will both open up and tie Chinese economy.